DEVELOPMENT OF BANGALORE EYE
Project Structure Report
GOVERNMENT OF KARNATAKA
INITIATIVE
DEVELOPMENT OF BANGALORE EYE
PROJECT REPORT
TOURISM PROJECTS FOR INVESTMENT
OPPORTUNITIES
INVEST KARNATAKA 2016
January 2016
Development of Bangalore Eye
GOVERNMENT OF KARNATAKA INITIATIVE
Table of contents
1.
INTRODUCTION .................................................................................................................................... 5
1.1
1.2
1.3
1.4
2.
SECTOR PROFILE................................................................................................................................... 8
2.1
2.2
3.
TOURISM IN KARNATAKA ........................................................................................................................ 9
ENTERTAINMENT PARK INDUSTRY OVERVIEW .......................................................................................... 10
SITE LOCATION ................................................................................................................................... 11
3.1
3.2
3.3
4.
BACKGROUND ....................................................................................................................................... 5
OBJECTIVES ........................................................................................................................................... 5
APPROACH AND METHODOLOGY .............................................................................................................. 6
PROJECT IDEA ........................................................................................................................................ 7
INTRODUCTION .................................................................................................................................... 11
INFRASTRUCTURE ................................................................................................................................. 13
WEATHER AND CLIMATIC INFLUENCE ....................................................................................................... 13
FERRIS WHEEL .................................................................................................................................... 14
4.1
4.2
4.3
BACKGROUND OF FERRIS WHEEL ............................................................................................................ 14
DESIGN OF FERRIS WHEEL ..................................................................................................................... 15
TYPES OF FERRIS WHEEL ........................................................................................................................ 15
5.
PROJECT COST .................................................................................................................................... 21
7.
ANNEXURE : CASE STUCIES................................................................................................................. 27
A.
LONDON EYE – LONDON .................................................................................................................... 27
B.
DESIGN & CONSTRUCTION OF LONDON EYE ...................................................................................... 28
C.
SINGAPORE FLYER-SINGAPORE .......................................................................................................... 36
D.
HIGH ROLLER-NEW YORK ................................................................................................................... 38
E.
STAR OF NANCHANG-CHINA .............................................................................................................. 40
F.
DELHI EYE ........................................................................................................................................... 40
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List of Tables
Table 1: Investments in Tourism Sector .............................................................................................. 9
Table 2: Weather & Climatic Influence in Bengaluru ........................................................................ 13
Table 3: World’s Tallest Ferris Wheels .............................................................................................. 19
Table 4: Area Break-up ...................................................................................................................... 21
Table 5: Cost Assumptions................................................................................................................. 21
Table 6: Ticket Costs of Ferris Wheel................................................................................................. 22
Table 7: Revenue Assumptions.......................................................................................................... 22
Table 8: Revenue Generation / month .............................................................................................. 22
Table 9: Requirements of different PPP frameworks ........................................................................ 24
Table 10: Features of proposed DBFOT structure ............................................................................. 24
Table 11:Details of London eye ......................................................................................................... 27
Table 12:Ticket Details Of London EYE .............................................................................................. 35
Table 13:Ticket Details Of Singapore Flyer ........................................................................................ 37
Table 14:Ticket Details Of Singapore Flyer ........................................................................................ 38
Table 15:Ticket Details Of Singapore Flyer ........................................................................................ 38
Table 16:Ticket Details Of High Roller- New York.............................................................................. 39
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List of Figures
Figure 1: Approach to the project ....................................................................................................... 6
Figure 2: Ferris Wheel ........................................................................................................................ 14
Figure 3: Design of Ferris Wheel ........................................................................................................ 15
Figure 4: Hub less Ferris wheel .......................................................................................................... 16
Figure 5: Unique Ferris Wheel ........................................................................................................... 17
Figure 6: Solar Powered Ferris Wheel ............................................................................................... 18
Figure 7: Eccentric Ferris Wheel ........................................................................................................ 18
Figure 8: Double Ferris Wheel ........................................................................................................... 19
Figure 9: World’s Largest Ferris Wheel.............................................................................................. 20
Figure 10: Implementation Framework ............................................................................................... 26
Figure 11: London Eye Capsule .......................................................................................................... 30
Figure 12: Buckingham Palace ........................................................................................................... 30
Figure 13: Royal Albert Hall ............................................................................................................... 31
Figure 14: Lord’s Cricket Ground ....................................................................................................... 31
Figure 15: Trafalgar Square................................................................................................................ 32
Figure 16: BT Tower ........................................................................................................................... 32
Figure 17: St. Paul’s Cathedral ........................................................................................................... 33
Figure 18: Houses of Parliament........................................................................................................ 34
Figure 19: Big Ben .............................................................................................................................. 34
Figure 20: Battersea........................................................................................................................... 35
Figure 21: Premium sky Dinning ........................................................................................................ 38
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1.
Introduction
1.1 Background
Department of Tourism (DoT) Government of Karnataka (GoK) is determined to
boost the tourism industry in the state. The Tourism Sector has been identified as
one of the key sectors propelling the country’s economic growth. Karnataka State
has been ranked as the 3rd preferred destination among domestic tourists in the
tourism sector. Karnataka’s thriving economy has created many opportunities
across the State in the last decade.
For GoK, the tourism sector constitutes a real priority because it is an important
sector for the generation of employment, therefore various initiatives are been
undertaken with the involvement of all stakeholders, both public and private, that
will foster a more favorable environment for the development and consolidation of
the tourism sector. One of the initiatives in this direction is the formulation of
Karnataka Tourism Policy for 2015-20.
GoK intends to encourage the investors to invest in the tourism sector. A host of
incentives and concessions are provided to the investors in tourism sector, in the
New Tourism Policy for 2015-20. A large emphasis has been laid on enhancing
hospitality services and standards, promoting innovative developments and
rejuvenation of older tourist attractions, with the aim of offering visitors the
experience that will be commensurate with higher expectations.
With this background, DoT has prepared a shelf of Project Reports of potential
tourism projects which could be undertaken for development along with
collaboration with the Private sector. To promote Tourism and to increase the
visibility of the City the Department of tourism intends to develop a India’s Tallest
cantilevered observation wheel, to have a highest public view point on the city’s
beautiful Top view, to create a Land mark and to make it as an entertainment park
for the urban population.
1.2 Objectives
GoK intends to develop an entertainment park to:
i.
ii.
Attract footfalls, encourage extended stays and provide a wholesome
experience to the tourists.
Encourage entrepreneurship and livelihood opportunities for the locals.
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iii. Encourage and promote Private Sector Participation in the development of
tourism sector.
Department of Tourism, Government of Karnataka, the agency responsible for
promoting tourism in Karnataka has been at the forefront in attracting large
number of tourists to the state and branding Karnataka as a tourist destination.
The Tourism Policy 2015-20 would act as a catalyst to promote development of
tourism infrastructure and related facilities without straining the budget of the
state. The utmost importance would hence be given to the developments under
Public Private Partnership (PPP) framework.
One of the key initiatives of DoT in the regard is to explore the possibility of setting
up of a large, multi-attraction, Landmark, Bangalore eye (A Giant Ferris Wheel) on
a Public Private Partnership (PPP) basis on the lines of large international Ferris
wheels like London Eye, Singapore Flyer.
1.3 Approach and Methodology
The approach to the entire assignment is depicted in the flow chart below.
6
Data Analysis • Tourist Footfalls
• SIte Locations
Case Studies - Ferris Wheel
• Internationally &
• in India
Estimation of Project Costs
• Capital Cost
• Revenue estimation
Figure 1: Approach to the project
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1.4 Project Idea
To increase the overall tourist experience and to have an overall visibility of the
important and landmark location within the city the Ferris wheel has been
proposed by the DoT. With the case studies of Giant Ferris wheels across various
countries. A Giant Ferris wheel is to be set up in Bangalore. The Ferris wheel is
used to make the people’s visibility of the city’s scape during day and night. Apart
from this there can be even events, dinning can be organized on the capsules of
Ferris wheel. Adding to the above the department intends to create a Landmark to
the city.
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2.
Sector Profile
India is fast emerging as an important tourism destination in the World. The
campaign "Incredible India" which showcases the best that India has to offer to the
tourists has now attracted worldwide attention. The proactive policies of the
Government of India have ensured that tourism enjoys an important priority
among all the States.
Indian tourism industry is one of the fastest growing in the world, ranking among
the world’s top five most popular tourist destinations. While the country has a lot
to offer, it lags behind in certain regulatory aspects, bringing its competitiveness
index ranking in this Sector to 62 among 133 countries. State policies are working
actively to mitigate these drawbacks, to realise the high potential in this Sector for
income and employment growth1. It is ranked the 14th best tourist destination for
its natural resources and 24th for its cultural resources, with many World Heritage
sites, both natural and cultural, rich flora & fauna, and strong creative industries in
the country. The India travel and tourism industry ranked 5th in the long-term (10year) growth and is expected to be the second largest employer in the world by
2019.
To improve the neceesary boost to indian tourism industry and to promote more
foreign touristis every year the Governement of India is instrumental to the
changes in the policies and their implementation.
Infrastructure development holds the key to India’s sustained growth in the
tourism sector. Therefore, Ministry of Tourism made consistent efforts to develop
quality tourism infrastructure at tourist destinations and circuits. To focus on
development of infrastructure at places of national and international importance,
the Ministry, through its scheme of providing financial assistance to the State
Governments There are various initiatives under the New Tourism Projects as
declared by the MoT. There is higher focus on Rural Tourism, Cruise Tourism
(Ocean and River), Golf Tourism, Adventure Tourism, Medical Tourism, Wellness
Tourism and Sustainable/Eco Tourism. The individual states also have their own
Tourism policies which are drawn in line with MoT and also with the vision of state
to promote the sector. It is expected that the tourism industry has the potential to
bring in revenue worth US$ 51.4 billion by 2019.
1 Advantage Karnataka (GIM)-Sector profile
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2.1 Tourism in Karnataka
With the largest number of institutes in hotel management and catering
technology in the country, the State has a large pool of skilled human resources.
The Sector is attracting significant investment by domestic and global players as
infrastructure is being ramped up to meet the needs of the growing tourist activity
Table 1: Investments in Tourism Sector
Measures & Indicators/ Projections
Arrival of Foreign Tourists (in lakhs)
Employment generated by tourism (in lakhs)
Arrival of domestic tourists (in lakhs)
Revenue due to tourism (in Rs. lakhs)
Forex earnings due to tourism (in Rs. lakhs)
Tourism contribution to State GDP (%)
2005
2.53
4.49
244.89
28,587
39,153
13
2010
3.23
5.72
359.82
46,039
49,970
15
2020
5.26
9.32
776.83
1,19,413
81,396
25
Source: Govt. of India, Department of Tourism, Market Research Division, Final Report on 20 year Perspective Plan
for Development of Sustainable Tourism in Karnataka – March 2003 Prepared by Dalal Mott MacDonald
Karnataka has Tourism Master Plan 2010-20 has been prepared with a vision to
improve and give a boost to the tourism sector in the state. The Master plan aims to
place Karnataka in the “Numero Uno” position in terms of tourist arrivals, tourism
spend, capital inflows for infrastructure development and other critical indicators of
tourism growth and development in the state. The Tourism Master Plan of the
Government of Karnataka draws its inspiration from the vision of the State as
enshrined in its Vision 2020 document.
The private Sector has shown considerable interest in the tourist industry in
Karnataka. Given the high growth potential, the State has attracted investment from
the hotel industry. All top-end luxury hotel chains have properties in and around
Bengaluru, while others are expanding. At the same time, the Government has been
actively working to aid private investment. There are 9 projects under
implementation in the hotels and resort segment under PPP mode with the
Government. Worth an investment of more than Rs. 300 crores at the following
locations: Jog Falls, Banvasi, Agumbe, Badami, Pattadakkal, Aihole, Belur, Bijapur and
Gokarna, the projects include development of theme parks, civic amenities, hotels
and restaurants, organised retail etc; in short creating a tourist friendly environment
at chosen locations. As of June 2009, there were 99 projects under implementation
in the hotel Sector in Karnataka, approved by the Government, with an investment
of Rs. 2,490 billion.
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2.2 Entertainment Park Industry Overview
General trend in the industry shows that amusements parks in India target kids and
youth from middle income segments with occasional promotional offers for the
low income groups. The parks receive visitors mostly from local/primary market
with few visitors from tertiary market as well. The parks get their revenue mainly
from entry tickets and F&B with other, less contributing, sources being rentals and
merchandizing.
The amusement park industry in India has grown significantly since its inception.
However, the size, footfalls and revenues are still very low as compared to their
global counterparts. The challenges in front of the Indian amusement park industry
still remain: low per capita income, low consumer willingness to spend, inefficient
infrastructure support, non availability of land and financing issues.
There are a good number of examples of medium to large size parks which have
been successful in India. The following table covers the main features of such
parks:
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3.
Site Location
3.1 Introduction
The location of the setting up Ferris wheel would be such that it attracts tourist on
both weekdays as well as weekends. One such location proposed is cubban park
which is spread over an area of 300 acres. It is located in a prime location where
the tourist can see a panaromic view of the city if the feeris wheel is installed. The
possible spots that can be viewed could be M.G Road, Vidhan Soudha, Cricket
Stadium and landscape of Cubban Park.
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The Tourist footfalls on an average during the weeddays is around 5000 and during
weekends is estimated to be 15000. The visitors to cubban park range from nature
entusiats, children, morning joggers, students and visitors from other places. As
the park offers various activities, addition of Ferries Wheel would enhance the
kaleidoscopic tourist experience. Some of the other locations that can be proposed
in the state aew are Mysore and Shimoga. A smaller size of ferris wheel is installed
and operational in Wonderla (a private entertainement hub) near Bidadi outskirts
of banagalore.
The tourist flow into the state has steadily increased from 2.52 crore in 2005 to
3.32 crore in 2009, which indicates a growth of 16 per cent. There are various
measures by DoT to further enhance the tourism sector as discussed earlier. There
have been various initiatives such as Master Planning of Heritage areas, creation of
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Tourism circuits, focus on improving infrastructure and encourage entrepreneurs
for construction of hotels with concession on loans and VAT exemption provided.
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3.2 Infrastructure
Bengaluru and Karnataka have good connectivity to the rest of India and the world.
The major infrastructure developments in Bengaluru have been covered earlier in
the report. In addition, the city and the state enjoy excellent access through
international airports at Bengaluru and Mangalore and the Golden Quadrilateral
passes through Bengaluru.
3.3 Weather and Climatic Influence
Weather is a major influence factor in any entertainment destination across the
world. The following table indicates the advantages of Bengaluru on this factor.
Table 2: Weather & Climatic Influence in Bengaluru
Climatic Zones
Bengaluru has a pleasant climate owing to the
elevation over sea level
Basic
Wind Bengaluru has moderate wind speeds. This is of great
Speed (Based importance particularly in the design and safety of
on the 50 high rides.
years Return
Period)
Bengaluru has a few number of thunder days in a year.
Average
Thunderstorm This is of particular importance for large amusement
parks with a significant number of outdoor rides.
days in a year
Seismic Zone
Bengaluru falls under Zone 1. Thus the chances of
major earthquakes are minimal and design parameters
would minimal.
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4.
Ferris wheel
A Ferris wheel, named after George Washington Gale Ferris, Jr, is a non-building
structure consisting of a rotating upright wheel with multiple passenger-carrying
components (commonly referred to as passenger cars, cabins, capsules, gondolas,
or pods) attached to the rim in such a way that as the wheel turns, they are kept
upright, usually by gravity.
Some of the largest modern Ferris wheels have cars mounted on the outside of the
rim, with electric motors to independently rotate each car to keep it upright. These
wheels are sometimes referred to as observation wheels, and their cars referred to
as capsules, however these alternative names are also sometimes used for wheels
with conventional gravity-oriented cars.
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Figure 2: Ferris Wheel
4.1 Background of Ferris Wheel
A Ferris wheel is an amusement park ride consisting of a large vertical wheel with
places for people to sit or stand spaced evenly around the outer circumference. In
operation, the ferris wheel revolves about a horizontal axis, and the riders are
alternately lifted and then lowered as they are carried around the wheel in a circle.
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When the wheel stops, the people in the seat or platform at ground level exit the
ride, and new riders take their place. The wheel then revolves a short distance until
the next seat or platform is at ground level, allowing more people to exit and
enter. This procedure is repeated until all the seats or platforms are filled with new
riders, at which time the wheel is set in motion to undergo several complete
revolutions. Although the name "Ferris wheel" was not used until the 1890s, the
wheel itself has been a part of human festivities for hundreds of years.
4.2 Design of Ferris Wheel
The Ferris wheel must also be designed to operate safely. This requires calculations
to ensure the horizontal and vertical forces of the fully loaded wheel can be
supported when the wheel is in operation. It also requires the design of safety
interlocks to prevent the wheel from revolving during loading and unloading
operations, and to prevent the operator from inadvertently operating the wheel in
an unsafe manner.
`
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Figure 3: Design of Ferris Wheel
4.3 Types of Ferris wheel
a. Hub less Ferris wheel
A hub less, or center less, Ferris wheel is exactly a Ferris wheel without a center.
It’s like the rubber portion of a tire without the hub or spokes in the center. Center
less Ferris wheels can operate in two ways:
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Like a typical Ferris wheel in that the wheel rotates and the carriages are attached
to the outer rim of the wheel.
The wheel is stationary and more like a track and the gondolas move around the
outside of the stationary wheel.
The purpose of operating like method number two is to provide an attraction
similar to a Ferris wheel with which the usual problems of Ferris wheel operation
do not exist. The gondolas no longer move with the rotation of a wheel but the
gondolas move along a track or bended track. This track can, for example, be
circular, as a result of which the effect of a Ferris wheel is achieved. Compared
with the conventional wheel, each of the gondolas has a relatively low weight.
Also, instead of the circular track described above, it is also possible to implement
other tracks along which the gondolas can be moved. Examples are polygonal
polygons, pyramids, ovals and the like.
The world’s largest center less Ferris wheel is the Big O at Tokyo Dome City in
Japan. It is 60 m (197) feet tall and features a steel roller coaster called the
Thunder Dolphin passing right through the center of it.
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Figure 4: Hub less Ferris wheel
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b. Unique Ferris Wheel Placement
Observation wheels have been built in some unusual places, such as on top of a
building or shopping mall, but perhaps the most unique location is the Tianjin Eye –
the only observation wheel to have been constructed over a bridge. The triangular
shaped supports straddle the Hai River and the wheel actually sits above the
highway on the Yongle Bridge. This masterpiece is found in Tianjin, China.
Figure 5: Unique Ferris Wheel
c. A Solar Powered Ferris Wheel
Santa Monica’s Pacific Wheel is the only solar-powered Ferris wheel in the world,
which makes it a pretty clean ride for those concerned about their carbon
footprint. At night, the wheel is illuminated with 160,000 energy-saving LED lights.
For $5, you can ride and catch the views from 130 feet in the sky above Santa
Monica Bay. Nearly 650 photovoltaic modules are mounted on top of the park’s
loading area to allow the wheel to run via a fully automated process. On cloudy
days, the wheel is run off of traditional energy sources.
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Figure 6: Solar Powered Ferris Wheel
d. Eccentric Ferris Wheels
Eccentric Ferris wheels contain a track on which the carriages are free to roll as the
wheel rotates. These wheels act like a combination roller coaster/Ferris Wheel as
the individual passenger baskets slide along the rails of the wheel for a more
dynamic ride. There are currently two eccentric Ferris wheels in operation
today. Mickey’s Fun Wheel is located at Disney California Adventure theme park in
Anaheim, California. The Wonder Wheel has been operating since 1920.
Figure 7: Eccentric Ferris Wheel
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e. Double Ferris Wheel
A double Ferris wheel, also known as a giant wheel, was manufactured by the
Swiss company Intamin. Each gondola was supported from an individual arm in a
circular fashion instead of being attached to a giant wheel. Each set of gondolas
was attached to an even bigger arm. Each set of cabins could be loaded separately
of each other resulting in a hour passenger per hour capacity than a standard Ferris
wheel. The Astrowheel at the former Six Flags Astroworld amusement park outside
of Houston, Texas was the first double Ferris wheel and operated from 1968 to
1980. Intamin produced four double Ferris wheels and none are operating today.
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Figure 8: Double Ferris Wheel
Table 3: World’s Tallest Ferris Wheels
Name
Height(m)
Country
Status
Remarks
High Roller
167.6
US
Completed
World's tallest
since 2014
Singapore Flyer
165
Singapore
Completed
World's tallest
2008-2014
China
Completed
World's tallest
2006–2008
Star
Nanchang
of 160
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Name
Height(m)
Country
Status
Remarks
London eye
135
UK
Completed
World's tallest
2000–2006
Delhi Eye
45
India
Completed
-
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Figure 9: World’s Largest Ferris Wheel
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5. Project Cost
This section captures the key financial highlights of the project components .
a.
Area Assumptions
Various Facilities has been provided along with the Construction of Ferris wheel. To
make the Ferris Wheel a Unique Experience many facilities like shopping , Dinning ,
Kids Play Zone, are been proposed to be provided along with Ferris wheel.
Table 4: Area Break-up
Area Break-up
Total Land Area
Area for Ferris Wheel
Shops
Restaurants
Play Zone
Parking
Total Area
b.
Acres
10
8
0.5
0.5
0.2
0.8
10
Sq.Ft
435600
348480
21780
21780
8712
34848
435600
Key Cost Assumptions
The key Cost Assumption are derived with the development of Ferris wheel along
with the Facilities which is to be provided.
Table 5: Cost Assumptions
Construction Cost
Land Development Cost
Construction of Ferris Wheel
Construction of Retail Shops
Construction of Restaurants
Construction of Play Zone
Construction of Car Parks
Total
Contingency (5%)
Total Cost
Operation & Maintenance
Per Sq.Ft
150
0
1500
2000
1500
600
Total Area
435600
0
21780
21780
8712
34848
In Lakhs
653.4
4640.9
326.7
435.6
130.6
209.0
6396.4
319.8
6716.2
134.25
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c.
Revenue Generation
The Ticket Cost of Various Ferris Wheels in the World are Taken down in order to
assume the cost of tickets.
Table 6: Ticket Costs of Ferris Wheel
Name
High Roller
Singapore Flyer
Star of Nanchang
London eye
Height(m)
167.6
165
160
135
Country
US
Singapore
China
UK
Ticket Cost
Rs 1700
Rs 1400
Rs 541
Rs 1600
Based on the Assumptions of Development Cost the Revenue is generated with the
assumptions of Footfalls , No.of Working hours, entry per person.
Table 7: Revenue Assumptions
Revenue
Total Passengers Seating Capacity
Weekdays (30%)
Weekends and Holidays (80%)
No: of Working Hours Per day in Hrs
Entry Per Person
Assumptions
480
144
384
10
Rs 800/-
The Assumptions of Footfalls are been calculated to generate revenue and the facilities
are also calculated for revenues. The total revenue is calculated as per assumptions per
month basis.
Table 8: Revenue Generation / month
Revenue
Weekdays Revenue / Day
Weekends Revenue / Day
Entry tickets
Rent Shops (100/Sq.Ft)
Restaurant (150/Sq.Ft)
Play Zone (100/Sq.Ft)
Parking (100/Sq.Ft)
Total Revenue / Month
In Lakhs
11.52
30.72
76.8
21.78
32.67
8.712
34.848
174.81
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6. Project Structuring Options
This chapter sets out the salient features of the different structuring options for
undertaking the implementation of the project under a suitable PPP model and
recommendation on the most suitable structure.
5.1 Review of different PPP Frameworks
There are mainly three different frameworks for contracting work under the PPP
model as described below:
5.1.1 Service Contract:
A specific service (discrete and clearly defined) is contracted out by the public
agency to a private operator. Payment is usually on fee per package basis. Service
contracts are subject to frequent competition and usually last for shorter term like
one year. It is also common to give out separate contracts for different parts of the
project to more than one operator, thereby enabling comparative competition.
5.1.2 Management Contract:
Under this arrangement, the private sector assumes the responsibility for core
activities such as operations and maintenance of units in a specific geographical
sector (which could comprise the whole or only a part of the entire project) or at a
defined level of responsibility. Public entities legally remain the owners of the
assets. A private company may agree to take over the responsibility for managing a
service to specified standards but using the staff, equipment, vehicles and
buildings of the public entity. In such a situation the private company would bring
in its management expertise, however is unlikely to make major capital
expenditure under such a structure.
5.1.3 BOT/ Concession Contracts:
The private operator is responsible for financing new investment in entire project
over the life of the contract. The assets are owned by the public entity; however,
the private operator takes over responsibility of managing assets, creating new
assets where required, raising finance for the new investments, providing the
service, operations and maintenance, collection of charges, if applicable. This
arrangement could apply to a specific jurisdiction or geographical area. The private
operator would pay an annual fee or may receive an annual subsidy depending on
the financial circumstances of the service. Such arrangements may apply in
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respect of commercial operations owned by an authority where the user charge
either covers or represents a substantial proportion of the total cost.
5.1.4 Review of the requirements for different frameworks
Table 9: Requirements of different PPP frameworks
Framework
Service
Contract
Management
Contract
Concession
Technical
Expertise
Yes
Managing
Expertise
No
Operating
Efficiency
No
Capital
Investment
No
O&M
Investment
No
Yes
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Based on the above available frameworks, the following structure has been
analyzed for undertaking the project:
5.2 Proposed Structure
The salient features of the proposed structure are detailed out as shown below:
Table 10: Features of proposed DBFOT structure
S. No
1
2
3
4
Particulars
Details
Framework for implementation Development of additional facilities under Design,
of project
Build, Finance, Operate and Transfer (DBFOT)
model
Facilities
to
be
• Ferries Wheel
developed/maintained
• Snacks /restaurents
Agreement
period/Contract 15 years etendable to 30 years (including 1 to 2
period
years for construction)
Parties involved
Authority (DoT)
Developer (Developer)
5
Ownership of assets
6
7
Capital investment
Operation & Maintenance
8
9
Revenue accruals
Payment Mechanism
10
Target category of private sector
DoT (Handback of all assets by the developer at
the end of the agreement period)
By the Developer
Responsibility of the Developer
To the Developer
Developer would make annual payment to DoT
with an escalation per annum
 Adventure sports operators
 Real Estate developers
The advantages and disadvantages of the structure are listed below:
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GOVERNMENT OF KARNATAKA INITIATIVE
a.
Advantages:
i.
ii.
iii.
iv.
v.
vi.
vii.
Bidder is allowed flexibility to develop the area in accordance with set
industry requirements
Ownership of the asset remains with DoT.
Length of concession period is fixed
Bidder would develop, operate and maintain the area over the concession
period
The land and the facilities developed on it, would be handed back to DoT at
the end of the concession period
Risk of time bound completion, cost overruns and revenue risk is
transferred to the Bidder
Revenues stream are assured and fixed
b. Disadvantages
i.
ii.
iii.
Technical proposals of the Bidders may need to be evaluated
Time for development may increase slightly in cases of conditions
precedent not being completed on time
All risks are borne by the Bidder and hence the Bidder may expect higher
returns from the project
5.3 Responsibility of the developer
Under this framework, the responsibilities of the developer would be:
a. To design, finance and develop the project facilities in line with DoT’s
requirement
b. Recover the investment by levying user charges on the various components
c. Operate and maintain the facilities throughout the agreement period
d. Make annual payments as agreed in the Project Development Agreement
e. Handback all the assets to DoT at the end of the agreement period
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5.4 Implementation Structure
Project Engineer/ KNNL
KNNL
Figure 10: Implementation Framework
The following diagram depicts the overall framework of the project execution:
5.5
Risks assessment
Under the above framework, following are the risks that would be transferred to the
developer:
a.
b.
c.
d.
The mobilization of finances would be the responsibility of the private
developer and the risks associated with the financial aspects in terms of
profitability and returns would lie with the developer
The risk of adhering to the Applicable Law would be passed on to the private
developer.
The risk of time-bound completion of the Project would be passed on to the
private developer. Since the revenue streams for the private developer from
the Project would commence only after completion of the Project, it would
be in the interest of the private developer to complete the Project as early as
possible.
The risk of over-runs in construction cost and operational expenses would be
borne by the private developer.
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7. Annexure : Case Stucies
a. London Eye – London
The London
Eye is
a
giant Ferris
wheel on
the South Bank of the River
Thames in London.
The
London Eye is also known as
the millennium wheel.The
London Eye adjoins the
western
end
of Jubilee
Gardens (previously the site
of the former Dome of
Discovery), on the South Bank of the River Thames
between Westminster
bridge and Hungerford Bridge,in
the London Borough of Lambeth.
The wheel was constructed in sections which were floated up the Thames on barges
and assembled lying flat on piled platforms in the river. Once the wheel was complete
it was lifted into an upright position by a strand jack system made by Enerpac. It was
first raised at 2 degrees per hour until it reached 65 degrees, then left in that position
for a week while engineers prepared for the second phase of the lift.
The attraction, funded by the airline British Airways, began as part of the celebrations
of the city for the arrival of the new millennium.
The London Eye tops the list of the ten most popular private monuments in the city.
Turn in a course that lasts 30 minutes, with a maximum of 800 passengers and on a
clear day can see up to Windsor Castle, 40 miles away. From its booth ensures a
panoramic view of 360 º.
Table 11:Details of London eye
Parameters
Value
Height
135 meters
Weight
2100 tn
Circumference
424 m
Total capacity
800 people
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Time taken per tour
30 Minutes
Cost
75 million pounds
Cost in INR
Rs 7471627312.50
Entry Charges
Rs 1500/ person
The British Airways London Eye is one of London’s newest and tallest landmarks, and is
the biggest observation wheel in the world. It consists of 32 glazed capsules each of
which can carry up to 25 people on a rotating, 135 meter diameter wheel.
Each oval shaped capsule is completely enclosed by curved glass, calculated to
withstand a wind force of about 280 km/h (174 mph) and to be strong enough to take
the weight of 25 people standing on it.
It is designed to be both beautiful and enjoyable, providing breath-taking views in a
unique and different way. The design and realization for the wheel, has drawn on
many areas and disciplines of engineering. Fairfield Control Systems were proud to be
part of the engineering team responsible for successful completion of this world
record breaking project.
b. Design & Construction of London Eye
The London Eye is a modern take on a traditional Ferris wheel with a few distinct
differences. For one, the passengers sit
in fully enclosed capsules rather than
dangling gondolas. Two, the entire
structure of the London Eye is
supported on one side only, allowing
the wheel to hang over the River
Thames.
The London Eye is an excellent
example of a frame structure.
Its steel design forms an "A" shape, with two large tapered legs at the base -- 65 feet
(20 meters) apart and each over 190 feet (58 meters) in length. The legs lean toward
the river at a 65-degree angle. Cable backstays keep the frame from tilting into the
river -- they're anchored to the top of the frame and then buried in a concrete
foundation 108 feet (33 meters) deep.
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Sweeping the skyline at 135m, British Airways London Eye is the world’s largest
observation wheel. A unique accomplishment of engineering and design, it offers
birds-eye views of the capital for over 25 miles in every direction.
The design is similar to a giant bicycle wheel with a central hub and spindle connected
to outer and inner rims by fine cable spokes. However, at nearly three times as high as
Tower Bridge and four times wider than the dome of St Paul’s Cathedral, it is over 200
times bigger than the average racing bike wheel. The 80 spokes consist of a total of
6km of cables; laid flat they would run from Trafalgar Square to Canary Wharf.
The spindle holds the wheel structure and the hub rotates it around the spindle. At 23
metres tall, the spindle is around the size of a church spire and, together with the hub,
weighs in at 330 tonnes: over 20 times heavier than Big Ben. 1,700 tonnes of British
steel have been used in the construction of British Airways London Eye, which makes it
heavier than 250 double decker buses, 280 adult African elephants or 1200 rugby
league teams. It took over a week to lift British Airways London Eye fully vertical from
a horizontal position across the Thames. This kind of procedure was only previously
attempted in oil rigging operations. British Airways London Eye will turn continuously,
an average of 8,000 revolutions per year. The 32 high-tech passenger capsules can
carry over 15,000 visitors a day, enough to fill Concorde 160 times over. Passengers
can see over 25 miles in each direction and are treated to aerial views of some of the
world’s most famous sights including St Paul’s, the Palace of Westminster and Windsor
Castle. British Airways London Eye is the capital’s fourth tallest structure with only
Canary Wharf, Tower 42 and London Telecom Tower standing taller. It is over 35
metres taller than Big Ben, nearly 30 metres taller than St Paul’s Cathedral, almost
three times as high as Tower Bridge and nearly a third again the size of the Statue of
Liberty. It is the highest structure in the UK which is open to the public. At 135m, the
London Eye is over twice the height of the famous Prater Wheel in Vienna seen in the
classic film, The Third Man, and outstrips the previous tallest observation wheel in
Yokohama Bay, Japan by 30 metres. Unlike the Prater Wheel, however, British Airways
London Eye is not a Ferris wheel because of three key differences. Firstly, the
passenger capsules are fully enclosed. Secondly, they are positioned on the outside of
the wheel structure and are fully motorised. And, thirdly, the entire structure is
supported by an A frame from one side only. Architects David Marks and Julia Barfield
first came up with the idea for British Airways London Eye as an entry for a Millennium
celebration competition. It took seven years and the expertise of hundreds of people
from five European countries to turn the dream into a reality. In its first year of
operation, 3.5m people visited the British Airways London Eye and saw the capital
from a totally new perspective
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Visibilities on London Eye
London Eye is the world’s largest observation wheel offering fantastic panoramic
views across London and a unique perspective on some of London’s most famous
landmarks. Once on the Eye, guests can orientate themselves from the N, S, E and
W signs clearly marked on each side of the capsule, and then see how many of the
following they can spot:
Figure 11: London Eye Capsule
Looking west
Buckingham Palace: The official residence of the British Monarchy. If the flag is
flying, the Queen is in home.
Figure 12: Buckingham Palace
Royal Albert Hall: Home to the Proms since 1941, the Hall, seen from above, is
oval and not as round as is often thought. Its glass and iron dome is 135 feet
(40.5m) high.
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Figure 13: Royal Albert Hall
Lord’s Cricket Ground: Named after Thomas Lord who moved his Marylebone
Cricket Club (MCC) here in 1814, Lord’s is one of the country’s most historic cricket
grounds. International cricket is played here and you can clearly see the toll that a
busy season takes on the wicket.
31
Figure 14: Lord’s Cricket Ground
Trafalgar Square: One of the most famous landmarks in London and home to
Nelson’s Column, which was built to celebrate Nelson’s victory at the Battle of
Trafalgar. Other landmarks to the west include Number 10 Downing Street, the
London Planetarium and Madame Tussaud’s, Piccadilly Circus, Horse Guard’s
Parade and, on a clear day, Windsor Castle.
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Figure 15: Trafalgar Square
Looking north
BT Tower: BT Tower at 584 feet high (177.5m), it is the third tallest building in
Britain. It has 57 microwave radio aerials on top that it uses for transmissions. •
Cleopatra’s Needle: carved from pink granite in Egypt in c.1475 BC, Cleopatra’s
Needle is older than London. One of a pair, its twin stands in Place de la Concorde
in Paris.
32
Figure 16: BT Tower
Covent Garden: The famous architect Inigo Jones was commissioned to build this
Piazza in 1631. As funds ran low, it was to be ‘not much better than a barn’. Other
landmarks to the north include Alexandra Palace, Embankment Place, Royal Courts
of Justice, Somerset House and the Savoy Hotel.
Looking east
St Paul’s Cathedral: Built in the traditional shape of a Latin cross, St Paul’s is a
reminder of London’s past among the modern architecture of the city’s financial
centre. • Tower Bridge: London’s most famous bridge was built after street riots by
angry citizens fed up with having to cross the river by boat.
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Figure 17: St. Paul’s Cathedral
Tower 42: At night Britain's second tallest building is identified by its electric blue
roof lighting. Other sites to the east include The Lloyds Building, Oxo Tower, Tate
Modern, BFI London IMAX, Thames Barrier, Canary Wharf and the Millennium
Dome.
33
Looking south-west
The Houses of Parliament: The House of Commons and the House of Lords are
easily distinguishable by the colour of their awnings. Red for the Lords and green
for the Commons. Westminster Bridge and Lambeth Bridge echo these colours.
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Figure 18: Houses of Parliament
Big Ben: One of London’s most famous landmarks, Big Ben actually refers to the
bell inside the tower and not the clock tower itself, which is called St Stephen's.
34
Figure 19: Big Ben
Westminster Abbey: Consecrated in 1065 and built because Edward the Confessor
wanted to make Westminster the base of his government. The country is still
governed from Westminster and, with the exception of only two, every monarch
since 1066 has been crowned here.
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Battersea Power Station: Now a listed building and host to concerts, plays and
exhibitions. The distinctive white towers are 300 feet (90m) high. Other landmarks
include Winston Churchill’s statue, MI6 Headquarters, Imperial War Museum and
the Tate Gallery. The Eye at night Views of London by night are particularly
beautiful from the Eye. Highlights include St Paul’s Cathedral, Embankment Pier,
Tower 42, Oxo Tower, Canary Wharf, Chinatown, the Houses of Parliament and
Somerset House. The largest clock face in Europe is illuminated on the former Shell
Building on the North bank.
Figure 20: Battersea
London Eye Tickets and Prices
35
Standard Ticket


30 – minute rotation
Entry to 4D cinema experience
Table 12:Ticket Details Of London EYE
Ticket Details
Cost
INR Cost
Adult (16+)
£23.00
Rs 2270.71
Child (3-12 years old).
£17.00
Rs 1678.00
Senior Citizens.
£20.00
Rs 1974.29
Family (2 Adults, 2 Children)
£80.00
Rs 7897.18
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c. Singapore Flyer-Singapore
Singapore Flyer is the world's largest giant observation wheel. Its 28 fully airconditioned
capsules
can
accommodate
up
to
28
passengers each. On a clear day,
the Flyer offers passengers a
45km panoramic view stretching
from Singapore's Marina Bay
waterfront across to Malaysia
and Indonesia. A complete 'flight'
lasts around 30 minutes.
An innovative vertical erection
method was used to overcome
the support structure limitations and space constraints on site. The wheel was erected
in a 'pie slice' fashion, with each segment being rotated until all segments had been
installed. Singapore's "Sumatra Squall" wind conditions posed a further challenge to
the design team. Extensive wind research and dynamic modelling were carried out to
ensure the comfort and safety of passengers in windy weather.
Design and Construction
The development has a gross building area of approximately 16,000 m2 (172,000
sq ft), built on a 33,700 m2 (362,700 sq ft) site along the Marina Promenade. Designed
by Arup and Mitsubishi Heavy Industries with a capacity of up to 7.3 million passengers
a year, the normally constant rotation of the wheel means that a complete trip lasts
approximately 30 minutes.
The wheel features 28 air-conditioned capsules
which, like those of the London Eye, are exocapsules attached outward of the wheel structure.
These offer the advantage of a continuously
unobstructed view when the capsule is at the peak,
unlike the more common endo-capsule design of
most wheels (e.g. Star of Nanchang). Each capsule
has a floor area of 26 m2 (280 sq ft) and is capable of holding 28 passengers, or up to
five wheelchairs and 15 other visitors when booked in advance for use by disabled
guests.
The terminal building on which the wheel sits comprises three floors of commercial
space, with an adjacent open air Greek-inspired theatre along the waterfront and
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complemented by a jetty. The site is fully landscaped, including roof gardens and a
recreated rainforest in the terminal's atrium. An open bus park for 40 buses is located
behind the building, and connected by an underpass to a covered multi-storey car park
for 300 vehicles. This car park in turn has direct links to the underground Promenade
MRT Station .
Visitors can take a free shuttle bus from City Hall MRT Station, which operates every
half-hour to and from the Singapore Flyer. Wheelchair ramps and lifts, handicapped
toilets, and a dedicated parking lot for the disabled are also provided.
Unique features of Singapore Flyer
Singapore Flight
The Singapore Flight Produces the experience of breathtaking , panoramic views on
the world’s largest observation wheel. There is only one place in Singapore offering a
bird’s view on the entire island city. Its about 165m above ground level .The People
can catch the glimpses of neighbouring Indonesian spice islands, and the straits of
Johor.
Table 13:Ticket Details Of Singapore Flyer
Ticket Details
Cost
INR Cost
Adult (13 Years or older).
S$33.00
Rs 1555.71
Child (3-12 years old).
S$21.00
Rs 990.00
Senior Citizens (60 years old S$24.00
and above)Only PR of
Singapore.
Rs 1131.41
Singapore Sling Flight
The Singapore Sling is synonymous to Singapore and its
known as the nation’s best- known cocktails.
It was one of the authentic recipe that was developed in
1915. And its complemented to the Passenger in the
Singapore Sling Flight.
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Table 14:Ticket Details Of Singapore Flyer
Ticket Details
Cost
INR Cost
Adult (13 Years or older).
S$69.00
Rs 3252.71
Child (3-12 years old).
S$31.00
Rs 1461.00
Premium Sky Dining
It’s a Sky Dining experience which comes with a 4-course
menu, butler service, magnificent skyline views in the
comfort of a spacious capsule, atop Asia’s largest Giant
Observation Wheel
Figure 21: Premium sky Dinning
Table 15:Ticket Details Of Singapore Flyer
Ticket Details
Cost
INR Cost
Couple
S$269.00
Rs 12689.00
Shop, Play & Dine
38
Apart from the above features there are retail activities, waterfront Dinning
Activities, and Play Activities which would be an additional entertainment for the
Visitors and in orderly to increase the foot falls of the clients.
d. High Roller-New York
High Roller, an “observation wheel” built by Caesars Entertainment, essentially a giant
Ferris wheel with enclosed cabins. Not just any
giant wheel, though—at 550 feet (168 meters),
it’s the world’s tallest, besting the Singapore Flyer
by nine feet (three meters) and the London Eye by
107 feet (33 meters). It just wouldn’t be a Las
Vegas attraction without a bit of world-beater
hyperbole. The High Roller eclipses both the
London Eye and Singapore Flyer. Facing north and
south (parallel to Las Vegas Boulevard), the wheel
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GOVERNMENT OF KARNATAKA INITIATIVE
takes 30 minutes to complete one full revolution and features 28 glass-enclosed cabins
with broad views of the famed resort city. Each spherical cabin can hold up to 40
people. There are benches on either side of the cabin, with plenty of floor space in
between. But we imagine you'll want to stand against the window and admire the
view.
Design and Construction
The wheel rotates on a pair of custom-designed spherical roller bearings, each
weighing approximately 19,400 lb (8,800 kg). Each bearing has an outer diameter of
7.55 feet (2.30 m), an inner bore of 5.25 feet (1.60 m), and a width of 2.07 feet
(0.63 m).
The outer rim comprises 28
sections, each 56 feet (17 m) long,
which were temporarily held in
place during construction by a pair
of 275-foot (84 m) radial struts,
prior to being permanently secured
by four cables.
The passenger cabins (or capsules)
are mounted on the wheel's
outboard rim and are individually rotated by electric motors to smoothly maintain a
horizontal cabin floor throughout each full rotation. Preliminary designs anticipated 32
passenger cabins, each with a 40 passenger capacity with the final design
accommodating 28 40-person cabins and a total capacity of 1,120 passengers.
Each 225-square-foot (20.9 m2) cabin weighs approximately 44,000 pounds
(20,000 kg), has a diameter of 22 feet (6.7 m), includes 300 square feet (28 m2) of
glass, and is equipped with eight flat-screen televisions and an iPod dock.
At night the wheel is illuminated by a 2,000-LED system] which can display a single
solid color, differently colored sections, multiple colors moving around the rim, and
custom displays for special events and holidays.
Table 16:Ticket Details Of High Roller- New York
Ticket Details
Cost
INR Cost
During Day
$26
Rs 1723.00
During Night
$36
Rs 2386.00
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e. Star of Nanchang-China
Star of Nanchang is the second tallest ferris wheel in the world. It is 160 meters high. It
has 60 capsules and each capsule can hold 6 to 8 people. Get on the Ferris wheel and
take a bird's-eye view of the Nanchang
City, Gan River and Xi Mountain. The Star
of Nanchang Ferris Wheel was once the
tallest Ferris wheel in the world prior to
the opening of the Singapore Flyer in 2008
which
over
took
its
status.
A total of 480 passengers can be seated
for one ride which lasts approximately 30
minutes. Within the cabins there are LCD
televisions and air conditioning ensuring
all those can enjoy the ride with a complete of Nanchang 160 meters in the air!.
"Star of Nanchang" Ferris wheel tread consists of six or seven thousands lights LED
semiconductor lighting device comprised. After all the lights removed ,people still can
see a 153 meters of the giant colored clock .It can set a different pattern, then color
light system has been preset 15 sets of programs. In addition, the public can also send
SMS to the control system, the Ferris wheel lights can display the content of the
message, as long as the number of words is under twelve.
Ticket Details
Cost
INR Cost
Standard
$8.16
Rs 541.00
f. Delhi Eye
The Delhi Eye is a transportable Ferris wheel
installation located at Kalindi Kunj Park in
the Okhla neighbourhood of Delhi. The
Delhi Eye has 36 air-conditioned cabins,
each cabin haing a carrying capacity of six
passengers. The Delhi Eye has been built by
Dutch Wheels BV a division of Vekoma
Rides, a Dutch company that has built and
operated rides across the world. The cost of
construction is estimated to be Rs 70
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Crores. Delhi Eye offers a bird’s eye view of popular sites in the vicinity – including Yamuna
river, Akshardham Temple, Humayun’s Tomb and even Lotus Temple, in a span of 20
minutes. Each trip is scheduled to have three trips at a cost of Rs 250 per trip per person.
The Delhi Eye span 18 storey high with a diameter of 40 meters. It can accommodate 288
people.
41